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April 17, 2012, for a 2011 calendar year

claim a credit or deduction for the foreign

of 12 months in a row. A full day means

return.

taxes paid or accrued on that income. If

the 24-hour period that starts at midnight.

only part of your income is excluded, you

When to claim the exclusion(s). The

To figure 330 full days, add all

cannot claim a credit or deduction for the

first year you plan to take the foreign

separate periods you were present in a

foreign taxes allocable to the excluded

earned income exclusion and/or the

foreign country during the 12-month

income. See Pub. 514, Foreign Tax

housing exclusion or deduction, you may

period shown on line 16. The 330 full

Credit for Individuals, for details on how to

not yet have met either the physical

days can be interrupted by periods when

figure the amount allocable to the

presence test or the bona fide residence

you are traveling over international waters

excluded income.

test by the due date of your return

or are otherwise not in a foreign country.

(including the automatic 2-month

IRA deduction. If you claim either of the

See Pub. 54 for more information and

extension, discussed earlier). If this

exclusions, special rules apply in figuring

examples.

occurs, you can either:

the amount of your IRA deduction. For

Note. A nonresident alien who, with a

details, see Pub. 590, Individual

1. Apply for a special extension to a

U.S. citizen or U.S. resident alien spouse,

Retirement Arrangements (IRAs).

date after you expect to qualify, or

chooses to be taxed as a resident of the

2. File your return timely without

United States can qualify under this test if

claiming the exclusion and then file an

the time requirements are met. See Pub.

Specific Instructions

amended return after you qualify.

54 for details on how to make this choice.

Special extension of time. To apply

Part IV

Part II

for this extension, complete and file Form

2350, Application for Extension of Time

Bona Fide Residence Test

Foreign Earned Income

To File U.S. Income Tax Return, with the

Department of the Treasury, Internal

Enter in this part the total foreign earned

To meet this test, you must be one of the

Revenue Service Center, Austin, TX

income you earned and received

following:

•

73301-0045, before the due date of your

(including income constructively received)

A U.S. citizen who is a bona fide

return. Interest is charged on the tax not

resident of a foreign country, or countries,

during the tax year. If you are a cash

paid by the regular due date as explained

for an uninterrupted period that includes

basis taxpayer, include in income on

earlier.

Form 1040, the foreign earned income

an entire tax year (January 1 – December

you received during the tax year

Amended return. File Form 1040X,

31, if you file a calendar year return), or

•

regardless of when you earned it. (For

A U.S. resident alien who is a citizen or

Amended U.S. Individual Income Tax

national of a country with which the

example, include wages on Form 1040,

Return, to change a return you already

United States has an income tax treaty in

line 7.)

filed. Generally, Form 1040X must be

effect and who is a bona fide resident of a

filed within 3 years after the date the

Income is earned in the tax year you

original return was filed or within 2 years

foreign country, or countries, for an

perform the services for which you

uninterrupted period that includes an

after the date the tax was paid, whichever

receive the pay. But if you are a cash

entire tax year (January 1 – December 31,

is later.

basis taxpayer and, because of your

if you file a calendar year return). See

employer’s payroll periods, you received

Choosing the Exclusion(s)

Pub. 901, U.S. Tax Treaties, for a list of

your last salary payment for 2010 in 2011,

countries with which the United States

To choose either of the exclusions,

that income may be treated as earned in

has an income tax treaty in effect.

complete the appropriate parts of Form

2011. If you cannot treat that salary

Whether you are a bona fide resident

2555 and file it with your Form 1040 or

payment as income earned in 2011, the

Form 1040X, Amended U.S. Individual

of a foreign country depends on your

rules explained under Income earned in

intention about the length and nature of

Income Tax Return. Your initial choice to

prior year, discussed later, apply. See

your stay. Evidence of your intention may

claim the exclusion must usually be made

Pub. 54 for more details.

be your words and acts. If these conflict,

on a timely filed return (including

Foreign earned income for this

your acts carry more weight than your

extensions) or on a return amending a

purpose means wages, salaries,

words. Generally, if you go to a foreign

timely filed return. However, there are

professional fees, and other

exceptions. See Pub. 54 for details.

country for a definite, temporary purpose

compensation received for personal

and return to the United States after you

Once you choose to claim an

services you performed in a foreign

accomplish it, you are not a bona fide

exclusion, that choice remains in effect for

country during the period for which you

resident of the foreign country. If

that year and all future years unless it is

meet the tax home test and either the

accomplishing the purpose requires an

revoked. To revoke your choice, you must

bona fide residence test or the physical

extended, indefinite stay, and you make

attach a statement to your return for the

presence test. It also includes noncash

your home in the foreign country, you

first year you do not wish to claim the

income (such as a home or car) and

may be a bona fide resident. See Pub. 54

exclusion(s). If you revoke your choice,

allowances or reimbursements.

for more information and examples.

you cannot claim the exclusion(s) for your

Foreign earned income does not

Line 10. Enter the dates your bona fide

next 5 tax years without the approval of

include amounts that are actually a

residence began and ended. If you are

the Internal Revenue Service. See Pub.

distribution of corporate earnings or

still a bona fide resident, enter

54 for more information.

profits rather than a reasonable allowance

“Continues” in the space for the date

Figuring tax on income not excluded.

as compensation for your personal

your bona fide residence ended.

If you claim either of the exclusions or the

services. It also does not include the

Lines 13a and 13b. If you submitted a

housing deduction, you must figure the

following types of income.

statement of nonresidence to the

tax on your nonexcluded income using

•

Pension and annuity income (including

authorities of a foreign country in which

the tax rates that would have applied had

social security benefits and railroad

you earned income and the authorities

you not claimed the exclusions. See the

retirement benefits treated as social

hold that you are not subject to their

Instructions for Form 1040 and complete

security).

income tax laws by reason of

the Foreign Earned Income Tax

•

Interest, ordinary dividends, capital

nonresidency in the foreign country, you

Worksheet to figure the amount of tax to

gains, alimony, etc.

are not considered a bona fide resident of

enter on Form 1040, line 44. When

•

Portion of 2010 moving expense

that country.

figuring your alternative minimum tax on

deduction allocable to 2011 that is

Form 6251, you must use the Foreign

If you submitted such a statement and

included in your 2011 gross income. For

Earned Income Tax Worksheet in the

the authorities have not made an adverse

details, see Moving Expense Attributable

instructions for Form 6251.

determination of your nonresident status,

to Foreign Earnings in 2 Years under

Earned income credit. You cannot take

you are not considered a bona fide

Moving Expenses in Pub. 54.

the earned income credit if you claim

resident of that country.

•

Amounts paid to you by the U.S.

either of the exclusions or the housing

Government or any of its agencies if you

Part III

deduction.

were an employee of the U.S.

Foreign tax credit or deduction. You

Government or any of its agencies.

Physical Presence Test

•

cannot take a credit or deduction for

Amounts received after the end of the

foreign income taxes paid or accrued on

To meet this test, you must be a U.S.

tax year following the tax year in which

income that is excluded under either of

citizen or resident alien who is physically

you performed the services.

•

the exclusions. If all of your foreign

present in a foreign country, or countries,

Amounts you must include in gross

earned income is excluded, you cannot

for at least 330 full days during any period

income because of your employer’s

-2-

Instructions for Form 2555 (2011)

Instructions For Form 2555 - Foreign Earned Income - Internal Revenue Service - 2011 Page 2

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